Japanese firm updates progress on Road to 2020 with continued focus on games

Sega Sammy has reduced the number of employees working long overtime by between 80 and 90 per cent since 2014, according to its 2018 Integrated Report.

Following the introduction of new measures aimed at developing a healthier work-life balance, employees at Sega Games, Sega Entertainment, and other Sega Sammy subsidiaries are working less overtime.

While it's a marked improvement, "long overtime" is recognised as more than 80 hours per month, meaning employees can be still be working around four extra hours a day without being recorded in these figures.

However, Sega Sammy has committed to improving the situation by implementing occupational training, attendance management, individual alerts for employees, consultations with superiors, establishment of no-overtime and no-meeting days, adjustment of work volumes, streamlining meetings, and revising operation flow.

Additionally, in-line with the Japanese government's "work-style reform", Sega Sammy is promoting remote working for its staff.

The government incentive is backed by a need to ease congestion in urban centres ahead of the 2020 Olympics, but also serves to benefit the work-life balance of Japan's workers.

Recently issued by Sega Sammy, the 2018 Integrated Report also provides an update on the Japanese firm's Road to 2020, a long-term business strategy towards increased sales, profits, and productivity.

The Road to 2020 sees Sega Sammy aiming for ¥300 billion ($2.6 billion) in entertainment contents sales with an operating income of at least ¥30 billion ($268 million) and operating income margin of ten per cent.

Currently its sales in this sector sit at ¥208 billion ($1.8 billion) for 2018, and are projected to reach ¥258 billion ($2.3 billion) for 2019. Estimated income sits at ¥14.8 billion ($132 million) for 2018, and ¥13.5 billion ($120 million) for 2019.

As for how it plans to hit those targets, Sega Sammy will focus on its global games business and vast catalogue of intellectual properties to "create major hit products".

The firm plans to launch "multiple new titles" in 2019, including 12 new digital games, targeting a 24 per cent increase in net sales and eight per cent decrease in operating income compared to the previous year.

Sega Sammy also revealed the lifetime sales and free downloads of a number of its intellectual properties. Sonic the Hedgehog is by far the publisher's most prolific franchise, and that is reflected by the 800 million downloads and units sold in its near 30-year lifespan.

First-party intellectual properties. Figures include free downloads

Of the franchises acquired by Sega, Total War is the most successful, with 22 million lifetime sales and downloads, followed by Football Manager with 18.1 million, and the Persona series with 9.3 million.

Acquired intellectual properties. Figures include free downloads

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